MNRB reported a net loss of RM5.9 million for QE30/9/2011 recently. The loss was mainly attributed to the recent Thailand flood. This cut short the 6 quarters of good results.
Table: MNRB's last 10 quarterly results
Chart 1: MNRB's last 19 quarterly results
Valuation
MNRB is pretty hard to valued as its bottom-line fluctuates substantially. The randomness in its bottom-line has certainly put off many investors. We must fall back on Price to Book as a measure of how cheap this stock is trading now. Its current Price to Book is at 0.51 time (based on yesterday close of RM2.47 & its NTA of RM4.86 per share as at 30/9/2011). At that multiple, MNRB is deemed undemanding.
Technical Outlook
With the poorer financial performance, MNRB's share price took a dive. Yesterday, MNRB broke below its "horizontal" support at RM2.35 when it hit an intra-day low of RM2.33. However, it managed to close above the support at RM2.47. This morning, MNRB inched higher to close the morning session at RM2.51 on small volume of 1159 board lots. Will there be another test of the "horizontal line"? Probably. If this support failed to hold up the stock, MNRB may test its next "horizontal line" at RM2.00.
Chart 2: MNRB's weekly chart as at Dec 13, 2011_11.00am (Source: Quickcharts)
Chart 3: MNRB's monthly chart as at Dec 1, 2011 (Source: Tradesignum)
Conclusion
Despite trading at a very low Price to Book, MNRB has hardly attracted investors' interest due to its uncertain financial performance. Its technical outlook is equally uncertain. While it may find support at the "horizontal line" RM2.35, the safer & stronger "horizontal" support is at RM2.00. That may be a better entry level to this fair-weather stock.
Hi Alex
ReplyDeleteCan you comment on Protasco? Currently trade at 92sen nearly a year low. Protasco also trade cum interim dividend of 4sen TE.
It recent result showed much lower earning, mainly due to provision of its oversea project, Libya due to civil war.
Hi Hng,
ReplyDeleteI am not familiar with Prtasco. The stock is in an intermediate downtrend line. Its immediate horizontal support is at RM0.90-0.92. It may or may not have broken above its downtrend line (depending on how you draw that line). I would say that if it can cross above the RM1.00 mark, the downtrend line could have been overcome. Until then, the outlook is still bearish.
Dear Alex,
ReplyDeleteWhat is your new opinion to MNRB?
Hi Green technology
ReplyDeleteMNRB had an upside breakout of its downtrend line in 2011 (at about RM2.70). Since then it has traded within a band of RM2.50 & RM3.50.
For FYE31/3/2012, MNRB reported a net profit of RM92 mil as compared to RM123 mil previously. At present price of RM2.81, MNRB is trading at a PE of 6.5 times (based on FY2012 EPS of 43.4 sen). Price to Book is low at 0.54 times (based on NTA of RM5.18 as at 31/3/2012). Last year, it paid a dividend of 20 sen less 25% tax. So, its DY is high at 7%.
All in all, MNRB is a cheap stock and if you are buying near to RM2.50-2.60 level, it is fairly safe.